Bo purchased $10,000 of the Vertex Balanced Segregated Fund at a time when the net asset value (NAV) was $8.33. The fund has a deferred sales charge (DSC) of 6% in the first year which is reduced by 1% every year. After the 6th year, the DSC becomes 0%. The fund has a management expense ratio (MER) of 2%. After holding the fund for three years, Bo redeems all of his units in the 4th year when the NAV of the fund is $10.25. How much will Bo receive from the withdrawal provided that there are no other penalties over and above the DSC?

Answer rating: 100% (QA)

Total Amount Invested 10000 NAV 833 Hence units purchased 10000833 ... View the full answer